Best Sugar Stocks in India

08 April 2024
8 min read
Best Sugar Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

Sugar, a crucial component of the human diet and staple foods, holds significant importance globally. Sugarcane alone constitutes nearly 80% of the world's sugar production, with the top 10 sugar-producing countries contributing to approximately 75% of the global output.

In India, the sugar industry emerges as the 2nd largest agro-based sector, playing a pivotal role in the nation's socio-economic development.

Sugar Industry in India - A Brief Overview

India holds the top spot globally in sugar production and ranks 2nd in exports. Renowned for its historical significance and role in rural development, the industry significantly contributes to job creation, rural income and overall economic growth. In recent years, the Indian sugar industry has undergone a notable transformation, evolving from primarily supplying sugar to households and bulk consumers to emerging as a major player in liquid energy generation. 

With diverse agro-climatic conditions and abundant freshwater from rivers and monsoon rains, India proves to be an ideal environment for sugarcane cultivation. Andhra Pradesh, Maharashtra, Uttar Pradesh, Gujarat, Bihar, Karnataka, Punjab, Haryana and Tamil Nadu stand out as some of the top states for significant sugar production. Moreover, the Government of India and the sugar industry share a remarkable synergy, leading to significant achievements such as low levels of cane dues pendency.

This coordinated approach towards supporting farmers and consumers has effectively kept domestic sugar retail prices stable in India.

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Best Sugar Stocks in India 2024 as per Analyst Ratings

The list here represents the top sugar companies listed in NSE as per analyst ratings. We have picked these ratings as a criterion since analysts run a complete check of the stock market before rating a stock:

S.No.

Best Sugar Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

Balrampur Chini Mills

71

2.

Triveni Engg

60

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Sugar Stocks in India in 2024 as per Market Capitalisation

The table below mentions the top sugar stocks as per market capitalisation:

S.No.

Best Sugar Stocks in India (as per market capitalisation)

1.

EID-Parry (India)

2.

Shree Renuka Sugars

3.

Balrampur Chini Mills

4.

Triveni Engg

5.

Bajaj Hindusthan Sugar

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Sugar Stocks in India as per Analyst Ratings and Market Capitalisation

Here is a comprehensive overview of the best sugar stocks as per analyst ratings and market capitalisation:

1) Balrampur Chini Mills

Established in 1975, Balrampur Chini Mills Ltd. (BCML) is an Indian sugar manufacturer that actively engages in sugar production and distribution. BCML's operations encompass a diverse range of activities including manufacturing and selling ethyl alcohol, ethanol, co-generated power generation and sales, as well as producing and selling agricultural fertilisers. 

Headquartered in Kolkata, the company operates around 10 sugar factories across the cane-rich belts of Eastern and Central Uttar Pradesh. BCML has a crushing capacity of 80,000 tonnes of cane per day, a distillery capacity of 1,050 kilolitres per day and a co-generation capacity of 176 megawatts.

2) Triveni Engg

Triveni Engg is one of India's leading sugar manufacturers that operates 7 cutting-edge FSSC 22000 certified sugar factories strategically positioned in Uttar Pradesh's sugarcane-rich region. These facilities produce a range of products including refined sugar, multi-grade white crystal sugar, potable alcohol, fuel-ethanol, pharmaceutical-grade sugar and power from bagasse. 

The company's operations are divided into 2 segments: Sugar and Allied Businesses and Engineering Businesses. Triveni Engg has a crushing capacity of 61,000 tonnes of cane per day, a distillation capacity of 660 kilolitres per day and 104.5 megawatts of grid-connected co-generation capacity. 

3) EID-Parry (India)

Headquartered in Chennai, EID-Parry (India) Limited operates in the sweeteners and nutraceuticals sector. Affiliated with the Murugappa Group, EID-Parry (India) stands out among India's leading sugar manufacturers, with 6 sugar plants and one standalone distillery scattered across South India. 

The company’s modern facilities have a sugarcane crushing capacity of 40,300 tonnes of cane per day, a distillery capacity of 417 kilolitres per day and a co-generation capacity of 140  megawatts. The company distributes its products under various brand names, such as Parry’s, USplus, Amrit, and Flexpro MD. Its sugar plants are located in Sivagangai, Pugalur, Bagalkot, Ramdurg, Haliyal,  Nellikuppam and Sankili. 

4) Shree Renuka Sugars

Shree Renuka Sugars Ltd (SRSL) is an agribusiness and bio-energy company operating sugar mills and refineries located in Mumbai. The company's product lineup includes sugar, power, ethanol and organic manure. SRSL runs 8 sugar mills in the sugarcane-rich regions of Maharashtra, Uttar Pradesh and Karnataka. 

Recognised as one of the largest exporters of refined sugar from India, SRSL handles over 1.38 million tonnes of raw sugar at its state-of-the-art refineries. It has a total crushing capacity of 46,000 tonnes of cane per day and a sugar refining capacity of 1.7 million tonnes per annum. SRSL also generates power from bagasse for its use and sells surplus power to state grids in India and Brazil. 

5) Bajaj Hindusthan Sugar

Based in Mumbai, Bajaj Hindusthan Sugar Ltd. (BHSL) stands as the country's leading manufacturer of sugar and ethanol. BHSL operates 14 sugar plants only in Uttar Pradesh, which are spread across different districts. These plants boast a combined sugarcane crushing capacity of 136,000 tonnes of cane per day and an alcohol distillation capacity of 800 kilolitres per day. 

Additionally, BHSL is also a major ethanol producer and contributes significantly to power generation, producing approximately 430 megawatts from bagasse, with nearly 100 megawatts supplied to the Uttar Pradesh state grid. Moreover, BHSL operates 5 coal-fired power plants, generating an additional 450 megawatts of electricity for the state grid.

Factors to Consider Before Investing in Sugar Stocks in India

Before investing in sugar stocks in India, it is important to consider the following factors:

  • Market Conditions

Changes in the prices and demand for sugars can significantly affect sugar stocks. Understanding the factors behind these changes is crucial for predicting future price trends.

  • Financial Performance

Before investing in sugar stocks, it is essential to assess a sugar company’s financial health. You must look at factors such as revenue growth, profit margins and debt levels.

  • Government Policies

Government policies, like subsidies and tariffs, have a big impact on the sugar industry. You must evaluate the regulatory environment to make informed investment decisions. 

  • Competition

The sugar industry is highly competitive, with many players competing for market share. You should stay informed about any new competitors entering the market, as this could impact the profits of current players.

  • Technological Advancement

You should keep an eye on technological advancements in the sugar industry. Many companies are investing heavily in research and development to boost efficiency and cut costs.

Should You Invest in Sugar Stocks?

There are various sugar companies’ stocks in India available for investment. While investing in sugar stocks may seem promising, it is crucial to understand the potential risks associated with them. Factors such as market volatility, weather conditions affecting production and stiff competition within the industry can impact the performance of sugar stocks. 

However, opportunities exist for diversification, technological advancements leading to increased yields and profitability and strong global demand in emerging markets.

Before investing in sugar stocks, conducting thorough research and staying informed about market developments are essential to align your investment decisions with your financial goals and risk tolerance.

The Bottom Line 

The future of sugar stocks in India appears bright, and the outlook for sugar stocks is promising. Therefore, investing in sugar stocks can potentially yield rewarding returns for investors who thoroughly comprehend the sector and the factors influencing its performance. However, it is crucial to conduct your research before finalising any investment decisions.

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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